Apple iPhone 17 Manufacture: The manufacture of iPhone 17 is expected to begin in India in the second half of 2024, as per a research paper by noted Apple Analyst Ming Chi Kuo. This will be the first time, the New Product Introduction (NPI) will start outside of China.
Apple's contract manufacturers in India Foxconn, Pegatron and Tata Group are expected to start the introductory process as early as 2024. Tata Group had acquired Wistron production line for $125 million. The manufacturing will also mark a significant milestone in Apple’s efforts in diversifying its supply chain.
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Economic Times quoted a noted Apple analyst Ming Chi Kuo who in his research note has said that Apple is also expected to scale down its operations with Foxconn in Zhenghzhou and Taiyuan in China by 35-45% and 75-85% respectively, by 2024.
“In addition to expanding production in India, Luxshare’s rapid increase in iPhone order allocation and improvements in production line automation are also the main reasons for the production scale reduction,” Kuo said in a research note.
Kuo also mentioned that the proportion of iPhones made in India will increase to 20-25% by 2024. Foxconn will own 75-80% of the production capacity in India in 2023 while 12-14% of the global iPhone shipments are made in India.
As per a report by JP Morgan, Apple is planning to shift 25% of its iPhone production to India by 2025. Meanwhile research by Counterpoint has mentioned that China's contribution to iPhone manufacturing is expected to drop to 91.2% of global shipments in 2023, from 93.5% in 2022. It further adds that by the end of this year, India's contribution will increase to 10% of global shipments, from 5-7% last year, and also meet 85% of the local demand.